Midland Packaging Ltd & Ors v HW Chartered Accountants (A Firm) [2010] EWHC B16 (Mercantile) (16 July 2010)

Midland Packaging Ltd & Ors v HW Chartered Accountants (A Firm) [2010] EWHC B16 (Mercantile) (16 July 2010)

The Claimants were the overall successful parties and entitled to their costs up to the date of their counter-offer, but due to exaggeration of their claim and unreasonable conduct in negotiations, the Defendants are entitled to 75% of their costs from the date of the counter-offer, to be set off against the Claimants' costs, all subject to detailed assessment.

Citation
[2010] EWHC B16 (Mercantile)
Parties
Claimant: First Claimant; Claimant: Second Claimant; Claimant: Third Claimant; Defendant: Defendant
Jurisdiction
England and Wales
Judgment Date
16 July 2010
Procedural Posture
Professional Negligence (tax Advice) / Post Trial Costs Judgment
Outcome
Claimants awarded costs up to date of their counter-offer; Defendants awarded 75% of their costs from that date, to be set off against Claimants' costs; all costs subject to detailed assessment.
Legal Topics
Costs, Part 36 Offers, Exaggeration of Claims, Mitigation of Loss, Standard Basis Assessment
Civil Procedure Professional Negligence Tax Law Costs Part 36 Offers Exaggeration of Claims Mitigation of Loss Standard Basis Assessment

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Parties

First Claimant

Claimant

Second Claimant

Claimant

Third Claimant

Claimant

Defendant

Defendant

Procedural Posture

Professional Negligence (tax Advice) / Post Trial Costs Judgment

Legal Issues

  1. 1 Who is the successful party for the purposes of costs?
  2. 2 Should costs be reduced due to exaggeration of claim and conduct?
  3. 3 What is the effect of Part 36 offers on costs?

Ratio Decidendi

The Claimants were the overall successful parties and entitled to their costs up to the date of their counter-offer, but due to exaggeration of their claim and unreasonable conduct in negotiations, the Defendants are entitled to 75% of their costs from the date of the counter-offer, to be set off against the Claimants' costs, all subject to detailed assessment.

Court Disposition

Claimants awarded costs up to date of their counter-offer; Defendants awarded 75% of their costs from that date, to be set off against Claimants' costs; all costs subject to detailed assessment.

Orders

  • Claimants to recover costs on standard basis up to date of counter-offer.
  • Defendants to recover 75% of their costs from date of counter-offer, set off against Claimants' costs.